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About this tool
Draft a gym or club membership refund, freeze and transfer policy and price a pro-rata cancellation against it.
The Membership Refund Policy Generator drafts the cancellation, freeze and transfer terms for a gym, studio or club, and prices a real cancellation using the pro-rata rule: plan fee multiplied by unused days divided by total days in the term. Days spent on a freeze are treated as suspended rather than consumed, so they never reduce the refund, and GST is returned only on the refunded slice in line with CBIC Circular No. 178/10/2022-GST. It is aimed at owners and front-desk teams who need one written answer that applies to every member.
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Under 'Price one cancellation', enter Plan fee excluding GST (INR), Joining fee excluding GST (INR), Membership starts, Membership ends, Cancellation effective from, Days already frozen, GST on membership (%) and a Reason for leaving.
In 'Policy rules', set Lock-in (days, 0 for none), Notice period (days), Cancellation charge (% of refund) and 'Cap on that charge (INR, 0 = none)', alongside the gym or club name and the freeze and transfer rules.
Read 'Refund due to the member' with its Pro-rata plan refund, Cancellation charge deducted, GST returned, Club retains and 'End date after freezes' rows, then press Copy policy to take the drafted wording.
Refunds follow unused days over term days, the calculation a consumer forum will expect to see.
Frozen days extend the end date and are excluded from used days, so members are not charged twice for the same pause.
Lock-ins over six months and exit charges that consume the whole refund trigger a warning before you publish them.
Multiply the plan fee by the unused days and divide by the total days in the term. On a Rs 36,500 annual plan running 1 January to 31 December, a cancellation on 1 July leaves 184 unused days of 365, so the pro-rata refund is Rs 18,400 before any cancellation charge.
A lock-in disclosed before payment is a contract term, but it is not unchallengeable. Section 2(46) of the Consumer Protection Act 2019 lets a consumer commission examine a term that imposes an unreasonable condition putting the consumer at a disadvantage, and a lock-in never protects a club that itself closes, relocates or withdraws the facility.
GST comes back only on the amount actually refunded. Fitness and health club services (SAC 999723) are generally taxed at 18%, and under CBIC Circular No. 178/10/2022-GST dated 3 August 2022 any cancellation charge the club keeps is itself taxed at that same rate, so that tax stays with the government.
No. A freeze suspends the entitlement, so the end date should move forward by exactly the number of days frozen and those days should not be counted as used when a refund is worked out. Writing that rule into the policy, along with the yearly allowance and minimum freeze block, prevents most membership disputes. This is general information, not legal advice.